Reddit Inc. (NYSE:RDDT) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Reddit shares have a “Moderate Buy” consensus from 30 analysts, with 18 buy ratings, 11 holds, and 1 strong buy. The average 12-month price target is about $228.61.
• Recent earnings beat expectations, with Reddit reporting $1.01 EPS versus the $0.62 estimate and revenue of $663.41 million, up 69.1% year over year. The company also posted strong margins and return on equity.
• Insider trading was mixed: director Sarah E. Farrell bought 10,500 shares, while CEO Steve Huffman sold 18,000 shares under a pre-arranged 10b5-1 plan. Insider ownership remains sizable at 34.25%.

Shares of Reddit Inc. (NYSE:RDDT - Get Free Report) have been assigned an average rating of "Moderate Buy" from the thirty analysts that are currently covering the company, MarketBeat Ratings reports. Eleven analysts have rated the stock with a hold recommendation, eighteen have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $228.6071.

Several analysts recently commented on RDDT shares. Piper Sandler reiterated an "overweight" rating and issued a $215.00 price objective (up from $205.00) on shares of Reddit in a research note on Friday, May 1st. B. Riley Financial raised their price objective on shares of Reddit from $245.00 to $250.00 and gave the company a "buy" rating in a research note on Friday, February 6th. The Goldman Sachs Group reiterated a "neutral" rating and issued a $200.00 price objective on shares of Reddit in a research note on Friday, May 1st. Roth Mkm raised their price objective on shares of Reddit from $210.00 to $215.00 and gave the company a "neutral" rating in a research note on Friday, January 30th. Finally, Truist Financial set a $265.00 price objective on shares of Reddit in a research note on Friday, May 1st.

Insider Buying and Selling at Reddit

In other Reddit news, Director Sarah E. Farrell bought 10,500 shares of the business's stock in a transaction on Friday, March 13th. The stock was bought at an average price of $132.26 per share, for a total transaction of $1,388,730.00. Following the completion of the transaction, the director owned 61,000 shares in the company, valued at approximately $8,067,860. The trade was a 20.79% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $171.80, for a total transaction of $3,092,400.00. Following the transaction, the chief executive officer owned 411,195 shares of the company's stock, valued at approximately $70,643,301. The trade was a 4.19% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 241,999 shares of company stock worth $36,678,168. 34.25% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Reddit

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Huntington National Bank grew its holdings in Reddit by 25.6% in the third quarter. Huntington National Bank now owns 270 shares of the company's stock valued at $62,000 after purchasing an additional 55 shares during the period. Institute for Wealth Management LLC. grew its stake in Reddit by 6.1% during the fourth quarter. Institute for Wealth Management LLC. now owns 1,071 shares of the company's stock worth $246,000 after buying an additional 62 shares during the period. Roxbury Financial LLC grew its stake in Reddit by 7.4% during the fourth quarter. Roxbury Financial LLC now owns 929 shares of the company's stock worth $214,000 after buying an additional 64 shares during the period. Florida Financial Advisors LLC grew its stake in Reddit by 6.7% during the fourth quarter. Florida Financial Advisors LLC now owns 1,087 shares of the company's stock worth $250,000 after buying an additional 68 shares during the period. Finally, Diversified Trust Co grew its stake in Reddit by 2.1% during the first quarter. Diversified Trust Co now owns 3,271 shares of the company's stock worth $440,000 after buying an additional 68 shares during the period.

Reddit Stock Up 5.2%

Shares of NYSE RDDT opened at $176.41 on Friday. Reddit has a 52 week low of $106.34 and a 52 week high of $282.95. The firm has a 50-day moving average price of $149.56 and a 200 day moving average price of $178.23. The stock has a market capitalization of $33.96 billion, a price-to-earnings ratio of 50.40 and a beta of 1.85.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported $1.01 EPS for the quarter, beating the consensus estimate of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The firm had revenue of $663.41 million during the quarter, compared to analysts' expectations of $607.74 million. During the same quarter last year, the business earned $0.13 earnings per share. The business's revenue for the quarter was up 69.1% compared to the same quarter last year. Equities research analysts expect that Reddit will post 4.83 EPS for the current fiscal year.

Reddit Company Profile

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called "subreddits," each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.

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